CCM non-coms + FCC rules

[LeighNash]

I saw this question posed to the Research Doctor at allaccess.com, and wanted to know how YOU would answer it .

Topic: FCC non-com loop hole?

Question: Dr. Wimmer: Being non-commercial of course means one cannot air advertising for commercial/for profit enterprises. However, stations can air paid spots for other non-profit organizations (credit unions, schools, etc.).

So I've heard of non-com stations that set up a separate non-profit extension of themselves for the sole purpose of being able to purchase ad time on the non-com mother ship. For instance, a concert promoter pays the non-profit extension to promote/publicize a show. In turn, this non-profit extension buys time on the non-com station pimping said concert.

Doesn't that defeat the intent the FCC originally had in mind for non-com stations? Is this seemingly skirting of the rules in place walking on thin ice, or is it perfectly acceptable? - Anonymous

 

[scooterodell]

I've heard of non-comms skirting the rules before in different ways, but this is a new one to me...but that may speak more to my inexperience with non-comms than anything else.

 

[JonHull]

Leigh,

I'm not an attorney, nor do I play one on the radio, but I do know that the FCC sees right through this one. The Commission is going to look for who is actually putting on the concert event. In order for your non-com to pass the sniff test, you've got to control enough of the event to "own" it. That means you'll probably have to book the artists, hire the venue, provide the sound & lights, etc... Since the other scenario you described wouldn't put these decisions in your hands (but would more than likely leave them to the actual promoter) I doubt that any station that tried it would ultimately prevail.

But, as with any legal question, you should ALWAYS check with your FCC attorney before you make these sorts of decisions.

Jon Hull
KSBJ/Houston


I saw this question posed to the Research Doctor at
> allaccess.com, and wanted to know how YOU would answer it
> .
>
> Topic: FCC non-com loop hole?
>
> Question: Dr. Wimmer: Being non-commercial of course means
> one cannot air advertising for commercial/for profit
> enterprises. However, stations can air paid spots for other
> non-profit organizations (credit unions, schools, etc.).
>
> So I've heard of non-com stations that set up a separate
> non-profit extension of themselves for the sole purpose of
> being able to purchase ad time on the non-com mother ship.
> For instance, a concert promoter pays the non-profit
> extension to promote/publicize a show. In turn, this
> non-profit extension buys time on the non-com station
> pimping said concert.
>
> Doesn't that defeat the intent the FCC originally had in
> mind for non-com stations? Is this seemingly skirting of the
> rules in place walking on thin ice, or is it perfectly
> acceptable? - Anonymous
>

 

[kilowatt]

A noted DC attorney has issued an opinion that indicates

You can air an announcement for a non profit (hospital let's say) that indicates "Best staff best doctors, best hospital".

In essence the opinion indicates non profits are not required to adhere to the Rules (price promo comparison, etc.) as they are exempt.

We are on the air to educate and support non profits in our community correct? Yes or no?

For concerts let's say this is a community event sponsored by a church or a true 501 c3. Carman ministries for example, the Apologetix booked by a local church, and so on.

Being fairly conservative because there are those for profits that would love to nail a non profit (and have the cash to do so) where does the Commission REALLY stand on this as opposed to the opinions of DC attorneys.....

> I saw this question posed to the Research Doctor at
> allaccess.com, and wanted to know how YOU would answer it
> .
>
> Topic: FCC non-com loop hole?
>
> Question: Dr. Wimmer: Being non-commercial of course means
> one cannot air advertising for commercial/for profit
> enterprises. However, stations can air paid spots for other
> non-profit organizations (credit unions, schools, etc.).
>
> So I've heard of non-com stations that set up a separate
> non-profit extension of themselves for the sole purpose of
> being able to purchase ad time on the non-com mother ship.
> For instance, a concert promoter pays the non-profit
> extension to promote/publicize a show. In turn, this
> non-profit extension buys time on the non-com station
> pimping said concert.
>
> Doesn't that defeat the intent the FCC originally had in
> mind for non-com stations? Is this seemingly skirting of the
> rules in place walking on thin ice, or is it perfectly
> acceptable? - Anonymous
>